Transfer Fee Thailand 2026: Rates and Hidden Costs

Buying a studio condo in Bangkok valued at 5,000,000 THB generates a transfer fee alone of 100,000 THB. That is just the starting point. On top of that come specific business tax or stamp duty, withholding tax, and - for tax residents of many countries - an obligation to declare rental income at home. This guide breaks down every fee and tax an international investor will encounter when purchasing property in Thailand or Cambodia in 2026.

Thailand operates a transaction cost system where fees are conventionally split between buyer and seller. Cambodia has simplified its model but introduced an annual property tax that Thailand lacked for decades. Investors from countries that have a double taxation treaty (DTT) with Thailand benefit from meaningful protections. Those buying in Cambodia face a different picture, as Cambodia has concluded fewer DTTs with Western nations.

Quick answer

Transfer fee in Thailand is 2% of the government appraised value (not necessarily the sale price). Conventionally split 50/50: 1% buyer, 1% seller.
Specific business tax (SBT) is 3.3% of the appraised value or sale price (whichever is higher), applied when the seller has held the property for fewer than 5 years.
Stamp duty is 0.5% and replaces SBT when the seller has owned the property for more than 5 years.
Withholding tax in Thailand is calculated on a progressive personal income tax scale (0-35%) for individuals, or a flat 1% when the seller is a company.
Cambodia charges a 4% transfer tax on property purchases, plus an annual property tax of 0.1% on the value exceeding 100 million KHR (approximately 25,000 USD).
Rental income tax in Thailand follows the progressive PIT scale (0-35%). In Cambodia it is a flat 10% withholding tax deducted at source.
The buyer's total entry cost in Thailand is approximately 1-2% of the purchase price. In Cambodia it is approximately 4%.

Options and scenarios

Scenario 1: Buying a condo in Thailand for 5,000,000 THB (secondary market, seller held under 5 years)

Assuming the appraised value equals the transaction price:

Transfer fee (2%): 100,000 THB. With the standard 50/50 split, the buyer pays 50,000 THB.
Specific business tax (3.3%): 165,000 THB. This falls on the seller, though in practice it is often subject to negotiation.
Withholding tax: depends on the seller's status. For an individual, the progressive scale applies - effectively around 2-5% at this price level.
Total buyer-side transaction cost: approximately 50,000-100,000 THB (1-2% of price).
Total seller-side cost: approximately 265,000-315,000 THB (5.3-6.3% of price).

Scenario 2: Buying a condo in Thailand for 5,000,000 THB (seller held over 5 years)

SBT does not apply. Stamp duty replaces it at a much lower rate.

Transfer fee (2%): 100,000 THB (50/50 split).
Stamp duty (0.5%): 25,000 THB, paid by the seller.
Withholding tax: same progressive calculation as above.
Total buyer-side cost: approximately 50,000 THB (1% of price).

Scenario 3: Buying an apartment in Phnom Penh for 80,000 USD

Transfer tax (4%): 3,200 USD. Conventionally borne by the buyer.
Annual property tax (0.1%): levied on the government-assessed value above 100 million KHR (roughly 25,000 USD). On an 80,000 USD property the taxable base is approximately 55,000 USD, so annual tax is approximately 55 USD.
No SBT or stamp duty in the Cambodian model.
Total entry cost for the buyer: approximately 3,200 USD (4%).

Rental income taxation

Thailand: rental income is subject to Thai personal income tax (progressive rates 0-35%). A non-resident foreigner typically has tax withheld at source by a property manager or tenant. Investors whose home country has a DTT with Thailand can offset Thai tax paid against their domestic liability using the proportional credit method.

Cambodia: rental income is taxed at a flat 10% withholding rate deducted at source. Investors from countries without a DTT with Cambodia face a genuine risk of double taxation. The only available mechanism is a unilateral proportional credit based on domestic tax law, which requires thorough documentation - including a tax payment certificate confirmed by the Cambodian tax authority.

Reporting obligation at home: most countries require tax residents to declare foreign rental income in their annual return, regardless of whether tax was paid locally. Consulting a tax adviser familiar with both local Southeast Asian rules and your home country's foreign income provisions is essential before completing any transaction.

Comparison table

Parameter	Thailand (seller held under 5 yrs)	Thailand (seller held over 5 yrs)	Cambodia
Transfer fee	2% (split 50/50)	2% (split 50/50)	4% (buyer)
Specific business tax	3.3% (seller)	Not applicable	Not applicable
Stamp duty	Not applicable (replaced by SBT)	0.5% (seller)	Not applicable
Withholding tax	Progressive 0-35% or 1% (company)	Progressive 0-35% or 1% (company)	Not applicable at purchase
Rental income tax	Progressive PIT 0-35%	Progressive PIT 0-35%	10% at source
Annual property tax	0.02-0.1% (commercial use condo, from 2020)	0.02-0.1%	0.1% above 100M KHR
DTT with major Western nations	Yes (multiple treaties)	Yes (multiple treaties)	Limited coverage
Estimated buyer entry cost	1-2%	1%	4%

Risks and mistakes

1. Ignoring the government appraised value. Thailand's Land Department independently values every property. Transfer fee and SBT are calculated on whichever is higher - the appraised value or the contract price. Understating the purchase price in the contract does not reduce tax if the official appraisal is higher.

2. Signing without agreeing on cost allocation. The 50/50 transfer fee split is a convention, not a legal requirement. Developers on the primary market frequently pass 100% of transaction fees to the buyer. The cost allocation must be explicitly stated in the sale and purchase agreement.

3. Assuming your home country has a DTT with Cambodia. Many investors assume that tax paid abroad automatically eliminates liability at home. For Cambodia, the proportional credit requires formal conditions to be met and proper documentation of Cambodian tax paid, including a certified receipt from the Cambodian Revenue Authority.

4. Choosing the wrong tax form at home. Some home-country tax regimes allow a flat-rate option on rental income from abroad, but that option can prevent you from claiming a foreign tax credit. If the effective local tax rate is high (for example, 10% in Cambodia), opting for a flat domestic rate may result in genuine double taxation. Verify the interaction with a qualified adviser.

5. Overlooking ongoing holding costs. Common area fees, sinking fund contributions, property insurance, and management fees in Thailand can reach 60-80 THB per square metre per month. These are not taxes, but they are real costs that affect net yield and must be included in any ROI calculation.

6. Currency conversion costs and transfer documentation. Transferring funds to Thailand requires demonstrating the source of funds via a Foreign Exchange Transaction Form (FETF) from the receiving bank. This form is mandatory for repatriating sale proceeds later. Bank spreads on large THB transactions can consume an additional 0.5-1.5% of the total sum.

7. Legislative changes. Thailand updated its rules on taxing foreign-sourced income repatriated in the year it is earned from 2024 onward. Cambodia has also signalled reforms to its property tax framework. The rates cited in this article reflect the position at the start of 2026. Always confirm current rules with a licensed local tax adviser before completing a transaction.

FAQ

What is the transfer fee in Thailand in 2026?

The transfer fee in Thailand is 2% of the government appraised value of the property. On a 5,000,000 THB condo that equals 100,000 THB. When split equally, buyer and seller each pay 1%.

Who pays the transfer fee in Thailand - buyer or seller?

Thai law does not prescribe who bears the transfer fee. Convention divides it 50/50. However, primary market developers frequently require the buyer to cover the full 2%. The allocation must be agreed and written into the contract before signing.

What is the difference between specific business tax and stamp duty in Thailand?

SBT (3.3%) and stamp duty (0.5%) are mutually exclusive. SBT applies when the seller has owned the property for fewer than 5 years. Once the 5-year threshold is passed, the much lower stamp duty applies instead. Both are calculated on the higher of the appraised value or sale price.

What property taxes does a foreign buyer pay in Cambodia?

At purchase, the buyer pays a one-time transfer tax of 4%. After acquisition, an annual property tax of 0.1% applies to the government-assessed value exceeding 100 million KHR (roughly 25,000 USD). There is no stamp duty or SBT in the Cambodian framework.

Does Thailand have double taxation treaties with Western countries?

Yes. Thailand has signed DTTs with numerous countries including the United Kingdom, Germany, France, the United States, and many others. These treaties allow investors to offset Thai tax paid against their domestic liability. Check whether your specific home country has an active DTT with Thailand.

Is there a double taxation treaty between Cambodia and Western nations?

Cambodia has signed a limited number of DTTs. Many Western investors will find no treaty protection for Cambodian income. This means rental income taxed at 10% in Cambodia may also be taxable at home, with only a partial unilateral credit available depending on domestic law.

How is rental income from Thailand taxed for a foreign investor?

Rental income is subject to Thai progressive PIT (0-35%). Non-residents typically have tax withheld by a property manager. Investors from DTT countries can credit Thai tax paid against their home-country liability using the proportional offset method. Rental income must still be reported at home.

What is the total transaction cost for a buyer of a condo in Thailand?

On the secondary market, the buyer's share of transaction costs is typically 1-2% of the purchase price. On the primary market the figure can reach 3-6% if the developer transfers all fees to the buyer. Always request a full cost breakdown before signing.

What documents does an investor need to apply the DTT when buying in Thailand?

Key documents include: the transfer fee receipt from the Land Department, annual rental income tax filings (where applicable), and a certificate of tax residency from your home country's tax authority. Documents in a foreign language generally need certified translation for use in Thai official proceedings.

Should investors include all transaction costs in their ROI calculation?

Absolutely. Gross rental yields in Bangkok or Phnom Penh of 5-7% look materially different once entry costs of 1.5-3% (spread over the holding period) plus annual taxes and management fees are deducted. Calculate net yield before making an offer, not after.

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Transfer Fee in Thailand 2026: Rates, Who Pays, and 7 Hidden Transaction Costs